HEWLETT-PACKARD

Managing on a Global Scale Hewlett-Packard (HP) is a global organization that has experienced
tremendous success in the technology sector. This success was achieved through a broad product
offering as well as a clear focus on innovation, so that it could remain competitive in such a dynamic
industry. It has triumphed in significant challenges throughout its tenure in this tumultuous market by
focusing on its management of such an enormous organization. This style of management has a direct
correlation to its success within the technology industry. Without the proper strategic plan and direction
in place, HP could have turned out quite differently from its current form and position of prominence.
The level of management to which HP has grown is not without controversy or challenges. To meet
these challenges, HP developed key processes to prepare its staff to manage issues that crop up. and
ultimately overcome barriers that lie in its path to continued success.

Computing a Path to Success

Hewlett-Packard was founded in 1939 by Stanford University classmates Bill Hewlett and Dave Packard.
Its first product, built in a garage, was an audio oscillator used by sound engineers as an electronic test
instrument. By 1940, it had moved out of the garage and into its first leased space. Then. in 1942, HP
began construction of its first corporate-owned building. designed with an open door plan with an
environment for creativity within the workspace of their eight employees. By 1951, HP had grown to 215
employees and was earning over US$5.5 million in revenues.

In 1957, HP introduced a stock option plan for all employees who had at least six months of service with
the company. It also introduced its corporate objectives focused on empowerment and decentralized
decision making, breaking away from the traditional top-down management style employed by most
other companies. The year 1963 brought to fruition HP's first joint venture in the Asian market—
Yokogawa-Hewlett-Packard (YHP) in Tokyo. Then in 1966, the HP lab was created, with a clear focus on
developing new ideas. In the same year, HP's first computer was created, and then expanded upon over
the next two years, to bring about the first "personal computer"—a desk- top scientific calculator that
could process information at a rate 10 times the speed of most machines at the time. HP continued its
dramatic growth, and by 1975, its revenues outside of the U.S. had exceeded those within the U.S. In
fact, by 1981, HP products were available in China. Throughout the 1980s, HP continued to expand its
product offerings, introducing the first mass- market printer as well as the portable personal computer.
The year 1998 brought about HP's first Personal Digital Assistant, which marked the precursor to its
cellular phone designs. In 2002, HP merged with Compaq, creating a new entity that served more than a
billion customers in 162 countries. HP continued its success with the acquisition of Electronic Data
Systems in 2008, 3Com in 2009, and Palm, Inc. in 2010. The future looks bright for HP as long as its
management is up to the task of managing the challenges and opportunities that lie ahead.

Global Management

Creating a successful company such as HP does not come without a great deal of hard work and
dedication on the part of those managing the operations. Forbes magazine ranked HP #67 on its Global
2000 list. This distinguished achievement required a great deal of commitment from all levels of
management at HP. With this recognition comes a great deal of responsibility to effectively manage its
nearly 350,000 employees. Operating such a large organization is no small feat and must be done
carefully if it is to remain successful. A company that has purely a domestic reach will not encounter the
same level of opportunities and challenges that a global firm does. There are many more considerations
involved when you step outside of your home borders and enter other countries with your product
offering(Market Development). This is especially true with a firm such as HP. Part of this global reach
struggle is illustrated in HP's move into India in 1988—this operation was under the leadership of Mr.
Suresh Rajpal, and he described

the process as follows: . . .

the making of an excellent organization consists of two very important aspects—employee satisfaction
and customer satisfaction. Traditionally the literature has pointed out very strongly towards customer
satisfaction. However, in HP it has been a belief that customer satisfaction is not possible without
employee satisfaction.

Therefore, in order to achieve success on a global scale, you must have the proper staff in place to
handle the global challenge. Your employees are going to look towards the corporate management for
support and direction to guide the work being done within the organization. This is an area in which HP
has been applauded as well.

Developing Your Management

Having the right employees in the right jobs is not something that happens by chance. It takes a
considerable amount of forethought to determine how best to run an organization. When it comes to an
organization the size of HP, this process is further complicated. This is precisely why it was vitally
important that management at the company received the proper training, and that HP also devised a
corporate direction for developing its talent within the organization. One initiative at HP to prepare for
the future and insure it had the proper staff in place was the creation of the Business Excellence
program. Created as a way to develop management members that HP needed to take them into the
future, the program is described as follows:

The curriculum evolved out of the needs of the business subgroups. Data was obtained from leadership
team meetings; interviews; and complete surveys by support function financial leaders, the marketing
department, HR, and employees. Course participants learn about company and business sector strategy,
financial management, operational inspection, and the regional and business unit priorities. Managers
also gain knowledge about how to leverage training solutions and how to deliver all constituencies of
business.

Through the Business Excellence program. HP could develop the staff necessary to effectively manage
and grow its business in the future.